Globe/CP say Peregrine abandons merger scheme

2008-11-27 08:33 ET - In the News

The Globe and Mail reports in a Canadian Press dispatch Thursday that Peregrine Diamonds Ltd. and Peregrine Metals Ltd. say they have decided to scrap plans to merge the two companies. The unbylined item says the deal collapsed after global miner BHP Billiton Ltd. exercised its earn-in rights on Peregrine Diamonds' Chidliak property on Baffin Island, Nunavut. The Vancouver-based companies said Wednesday their boards have agreed to end discussions on a merger arrangement announced in June that would create a multimineral resource company. Under that arrangement, BHP, owner of Canada's Ekati diamond mine, can earn an initial 51 per cent of Chidliak by financing exploration of the property. Peregrine Metals said it will continue to develop its South American exploration projects as a private company. Peregrine Diamonds fell half a cent to 42 cents.